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Gold/Mining/Energy : Lundin Oil (LOILY, LOILB Sweden) -- Ignore unavailable to you. Want to Upgrade?

To: Tomas who wrote (626)	6/8/1998 9:13:00 PM
From: Tomas	Respond to of 2742

The Falklands: Gulf Canada and Roc Oil Agree to Share Exploration Risk and Upside Potential, Offshore Falklands DENVER, COLORADO, June 8 /CNW-PRN/ - Gulf Canada Resources Limited (Gulf) and Roc Oil Company Limited (ROC) have entered into a Share Sale Agreement (the ''Agreement'') with regard to Gulf's interest in Tranches C & D, north of the Falkland Islands. The principal commercial terms of the Agreement may be summarized as follows: - The Agreement was signed on 21 May 1998 and is subject to the approval of the Governor of the Falklands Islands. - Gulf holds a 12.5 per cent interest in Tranches C and D through its wholly owned subsidiary Clyde Expro Limited. Gulf will transfer its entire interest in Tranches C and D to a wholly owned subsidiary, to be named Gulf-ROC Falklands Ltd., following which ROC will acquire 100 per cent of the outstanding shares of that company. - ROC, a Sydney-based privately funded oil exploration company, will reimburse Gulf for its net share of 1998 Joint Venture costs, meet all of the ongoing expenditure obligations that would otherwise be for Gulf's account and issue to Gulf 120,000 ROC shares at an issue price of US$22/share, reflecting the current market price of ROC shares based on independent third party transactions. ROC will also appoint a Gulf nominee to its Board of Directors. - ROC will also issue to Gulf up to 75,000 additional ROC shares, at US$22/share, depending upon the results of the 1998 drilling campaign in Tranches C and D and neighbouring areas. - If a commercial discovery is declared in either Tranche C or D, Gulf will have the option to reacquire 20 per cent of its original 12.5 per cent interest, or the economic equivalent thereof, by reimbursing 20 per cent of ROC's net expenditures plus interest. - The issuance of ROC shares to Gulf is subject to the approval of Australia's Foreign Investment Review Board. The North Falkland Graben lies approximately 200km north of the Falkland Islands and covers an area of about 7500 sq km/1.85 million acres (Attachment 1). The first well drilled in the region was spudded by Amerada Hess in late April 1998 in Tranche A, approximately 1.5km north of the northern boundary of Tranche C. Neither Gulf nor ROC participated in the drilling of the Amerada well which reportedly encountered oil and gas shows in non-commercial quantities prior to being plugged and abandoned in late May 1998. The first well on the Minke prospect in Tranche C, which is subject to the Agreement, is scheduled to spud in early June 1998 and is projected to reach a Total Depth of about 1900m. biz.yahoo.com